Be honest, how does it feel to be super prestigious?

Sunshine Funshine's picture
Rank: King Kong | 1,951

A lot of people are in IB for the prestige and the money. As a college student, I've always wondered - for someone in a top job (i.e. MD, C-Suite, wealthy independent investor, etc) who is drowning in money, how does it feel walking around daily life? Like, do you walk into a bar feeling confident and arrogant, do you walk in a restaurant and immediately assume you are better than everyone else? Or do you just feel like a regular dude?

Comments (64)

Feb 14, 2019

How long is a piece of string?

Feb 14, 2019

Twice as long as half its length

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Feb 14, 2019

You get more confident yeah but it's more of a function of knowing that you know what you're doing.

...didn't really start buying anything expensive or anything like that after cracking 7 figures.

Feb 14, 2019

You really make over $1,000,000 a year?

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Feb 14, 2019

Yes. Have a little self-funded PE firm that I spun up this year with a few partners after bootstrapping/selling a few companies.

Feb 14, 2019

PM me? Very impressive

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Funniest
Feb 14, 2019
Sunshine Funshine:

PM me? Very impressive

Lol tf is this tinder?

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Feb 15, 2019

Why? Post what you want here. Based on your previous threads I don't think pming you is a good idea.

Feb 15, 2019

Just read through this guys post history. He talks about how well he's doing constantly (usually when it's not even relevant) so all of your questions should be answered from his old posts

Fuckin my way thru nyc one chick at a time

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Feb 15, 2019
Sunshine Funshine:

PM me? Very impressive

?

"If you always put limits on everything you do, physical or anything else, it will spread into your work and into your life. There are no limits. There are only plateaus, and you must not stay there, you must go beyond them." - Bruce Lee

Feb 15, 2019

How does this even happen? I ran across a guy who runs his own M&A advisory firm and would have liked to ask him the same question.

Feb 15, 2019

I know a few guys that have broken off larger firms in their later years and started a very hyper focused "niche" firm on the M&A side.

In PE I know 3 - 4 entrepreneurs that sold companies and started up a VC/PE firm. It's not really rocket science if you stick to your core skill set and what you know best. Our deals are all pretty small because it's the capital from my partner(s) and I, then sometimes outside investors if we feel they add value and we'd enjoy having them onboard so bidding on deals isn't very competitive purely due to smaller deal size.

The nice thing too about small deals is that you're not competing against anyone too bright because all the smart PE/VC guys are at big funds that would never touch a company with $2M in EBITDA. Occasionally you'll run into a search fund guy but they rarely have as much hard experience starting/scaling and selling a company. The really shitty thing about these deals though is that there aren't very many layers between the frontline and management which means you have to get your hands filthy. IE literally moving to bumfuck nowhere next month to run a portco until we can scale and hire management; will be stuck managing $12/h production employees. That part isn't fun but its' 2 - 6 months tops and then I can GTFO back to civilization hopefully or just lose all my money IDK.

Feb 15, 2019

So basically, are you a douche? Or are you not a douche?

Feb 15, 2019

Serious take on this, I've been quite blown away by the humbleness of top level execs in the HF/PE space...
Also met a couple BB IB MDs and Club Managers, they were ultra humble too

I think arrogance is best displayed by the guys who work lower level jobs at shit firms.

Whereas --- someone running a decently successful HF knows who they are and don't need to be in your face about it

thots and prayers

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Feb 15, 2019

These sort of questions always seem to go back to self worth for me and what you value. If your entire identity is wrapped in your job and your killing it, you da man, and nobody can tell you otherwise. If your identify isn't wrapped up entirely in your job and the other stuff in your life isn't going your way then the prestige of that job won't pay the self-esteem bill.

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Feb 15, 2019

If only I had a dollar for every time I read a post about prestige on WSO......

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Feb 15, 2019

It comes up in conversations with my partners. Will (future tense) money change you? Can you handle a $1,000,000 paycheck?

My observation, money changes most people.

Feb 15, 2019

I don't think it'll change me. Why don't you send a check my way to test out my theory?

This is a good detailed read on a John W who won $315 million.
http://www.washingtonpost.com/wp-dyn/articles/A363...
We probably won't read or hear stories about people who weren't changed because they're probably short and boring.

Most Helpful
Feb 15, 2019

I think that a status boost gives people a sense of confidence compared to their peers. But it's temporary, because it also changes who they perceive to be their peers. So someone who gets into a "target" college feels great about it, but then he goes to the college and his peers become the other students there, not his old high school classmates he left behind. So he is back to square one in the status hierarchy game, except when he goes back home for Christmas break.

That cycle can repeat with every rung he climbs on the status ladder. Eventually he could be a billionaire but still be consumed with frustration that some asshole he knows is 50 places higher than he is on the Forbes 400, and has a nicer Ivy League building named after him. He has moved stratospherically beyond his high school classmates. But he no longer sees them or cares about them, so his higher status doesn't make him feel good, just like posters here don't get a surge of pride from the thought that they're richer than someone from the Congo.

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Feb 21, 2019

Damn good post! I think everyone should reflect on how far they've come every once in a while especially in competitive industries like finance where it's easy to fall prey to this line of thinking

Array

Feb 15, 2019

Its not about the money or prestige but the ability to do exactly what you want to do in life to me

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Feb 16, 2019

A lot of truth to this.

Feb 16, 2019

If you live in a small town $200K might sound like royalty. But when you live in a big city like NYC, "SF", LA, Chicago, etc., even a 7 figure salary feels like "middle class." Wealthy would be $10-20MM/yr in interest and dividend income, while "rich" would be $100MM+/yr.

So no, no major sense of catharsis for me. I'll be hustling for a while.

Just a quick add-on: yes it's great to live a good life and I'm aware of my privilege. But I think it's important to be aware that prestige and money don't necessarily go hand in hand. They do up to a certain point, but I'd argue that the Prince of Monaco ($1B) is not half as prestigious as Howard Schultz ($2-3B). Prestige is more about the person, while wealth is more about the money. Somewhat correlated but not linearly.

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Feb 16, 2019

even a 7 figure salary feels like "middle class." Wealthy would be $10-20MM/yr in interest and dividend income, while "rich" would be $100MM+/yr.

There is no way on earth that seven figures is "middle class". realistically the upper bound for UMC in those cities is $400-450k. After that point, no reasonable individual can argue that you're anywhere near "middle" class.

This viewpoint about wealth seems extraordinarily tone deaf considering how many people live in these places on legitimate middle class or working class incomes.

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Feb 17, 2019

I guess it boils down to what you think being wealthy or rich entails. I'm here to tell you that you're in for a rude awakening if you think that you're at the top of the pecking order with a salary of $1MM in a major city.

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Feb 16, 2019

How is it possible for an average joe to end up making 6 figures in interest and dividend income?

Feb 17, 2019

Take risks when you're younger by buying lots of equity in high growth assets. As you get older, ideally the balance of your assets approaches around $3MM, which is around the size of an asset base you would need to generate a perpetual $100K income that can potentially grow a little with inflation at current yields.

Now this is not really likely, unfortunately, and it wouldn't be your fault. It would require substantial luck on your part if you make 50-80K a year to do this. It's fairly reasonable on incomes of 150-200K. Your savings rate is a function of your income, and the value of your investment balance (realistically) should grow at some long term equity growth rate (say 9% a year). If you run the numbers, the probability of you hitting your target balance should inform you on how much luck you'll need.

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Feb 21, 2019

Lol I cant find the comment nor do I feel like it but whoever said the average joe can make 6 figures on interest and dividends is fucking stupid. There can only be two ways 1) trust fund 2) inheritance.

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Feb 16, 2019

"Rich" is considered 100mm in dividend/interest income? Lol. Maybe your "circles" are much more elite than ours. Even in a city like LA, there's hardly 200 people (very generous estimate) who would qualify as "rich" by your standards; they would require a net worth of at least 1 bill to claim that much in dividend/interest income.

Feb 16, 2019

Even 1mm in dividend/interest income is insanity lmao

Feb 17, 2019

And yet you acknowledge that they exist. Knowing that, would you still dare to claim "wealth" with a net worth of only $5MM? Probably not-- you realistically wouldn't feel comfortable with calling yourself rich until you hit $150-300MM in net worth in a big city.

By the way, this is also what explains DJT's massive chip on his shoulder. He always brags about how rich he is, but he knows that there are people with net worths that make him look poor and aren't afraid to remind him of that fact.

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Feb 16, 2019

Most of my clients have this quiet confidence that oozes out of them. It's not pretentious at all, you can just tell they don't walk around trying to prove anything to anyone.

In addition they are never in a hurry or rushed. They are fully present in conversation, not looking at their phones, and engaging fully in the present.

YMMV

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Feb 16, 2019

Prestige is relative.

My experience is that it's usually only other upper white-collar professionals that will give two shits about whether you're a banker, consultant, or similar. Literally no one in the real world cares about your banking profession.

Now, if you tell them that you're a artist, athlete, actor, entrepreneur - and some professional jobs like medical doctor, vet - they will go "Ohh, that's so cool - tell me more about it".

Sure, bankers make good money and have great career opportunities, but if you're going into it for the bragging rights, then you're gonna be sorely disappointed (tip: Don't go into it for the preftige).
If you tell regular people that you work in banking, you might as follow up with telling them that your favorite hobby is watching paint dry.

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Feb 21, 2019

Posts like these are so exhausting. You guys are the reason "even a 7 figure salary feels like middle class".

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Feb 21, 2019

It's all relative to the social groups you surround yourself with. Few things in the world feel better than watching that person who wanted to surpass you grit his/her teeth as you talk about achieving their very desires (think Vegeta, Sasuke, or Hillary Clinton HAH)

Around my friends, I present myself very comfortably...almost too comfortably to the point that I seem aloof and silly. It's honestly kind of funny when they admit to me "how the fuck are you a functioning self-sustaining person? Let alone someone with a well-respected job?"

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Feb 21, 2019

I only make $10 mil a year in interest income so I'm essentially middle class. Would be interested in hearing from others who are actually prestigious. Thanks

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Feb 21, 2019

Lmao dude we all know this isn't true

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Feb 23, 2019
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Feb 24, 2019